Oil prices decline still further

Economic fears are hitting global demand for oil

Oil prices are continuing recent falls, dragged down by the expectation that turmoil in the global financial sector will lead to a wider economic slump.

With demand already falling, US light crude ended down 5.2% or $4.09 cents to $74.54 a barrel on Wednesday, its lowest level for 13 months.

Brent crude was also lower, dropping $3.56 cents to $71.04. Back in July, oil prices hit a record $147 high.

The world's major oil producers are now likely to further cut production.

'Global situation'

Members of the 13-nation Organization of the Petroleum Exporting Countries (Opec) have already hinted that output will be cut following their next meeting in November.

Opec has already lowered output following its September meeting, as it aims to shore up prices in the face of the falling demand.

"The situation of the global economy is the main reason for the price drop," said Iranian Oil Minister Gholamhossein Nozari.

Opec comprises Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.